New mortgage rules deny 1st-time homebuyers a roof over their heads ?

New mortgage rules pushing 1st-time homebuyers to wait

CBC News
Some first-time buyers are waiting longer to get into the market, especially in British Columbia. 

A year after Finance Minister Jim Flaherty tightened mortgage rules to not allow insured mortgages with amortization terms of more than 25 years, many prospective buyers say they are waiting longer to buy their first home.

About 19 per cent said they would wait longer to buy, a survey by Pollara for BMO Bank of Montreal showed.

In June 2012, Flaherty laid out rules aimed at reining in a hot housing market and ensuring Canadians aren’t taking on more debt than they can afford. The rules went into effect July 9, 2012.

First-time homebuyers were expected to be the most affected by the new rules, which included reducing the maximum amortization period for a government-insured mortgage from 30 to 25 years, and also dropping the upper limit that Canadians could borrow against their home equity from 85 per cent to 80 per cent.

A year later, about 66 per cent of buyers said the changes had not affected their timeline on buying a first home, according to a survey by BMO Bank of Montreal.

But first-time buyers in B.C., where Vancouver prices were considered particularly overheated, were most likely (33 per cent) to say they would wait longer to buy their first home. That compares to 11 per cent of Ontario buyers, 25 per cent in the Prairies and 28 per cent in Atlantic Canada.

Pollara conducted online interviews with a random sample of 2,000 Canadians 18 years of age and over, between Feb. 25 and March 5 and the results are considered accurate within 2.2 percentage points, 19 times out of 20.

“The main concern with most buyers is getting a downpayment,” said Laura Parsons, a mortgage specialist with BMO. “Many people who think they cannot afford a downpayment [now at least 20 per cent of the cost of the house], now are reconsidering and finding that they can.”

Parsons says people will strategize to maximize their savings and that helps give them the discipline to carry a mortgage, though they may have to wait longer.

The tighter rules have led to a plunge in home sales over the past year, with prices slower to react.

As June real estate sales trickle in, it appears that housing sales are recovering. Most analysts believe Flaherty has been successful in averting a crash with his new rules for home buyers.

“While Canadian home sales weakened markedly at the time of the mortgage changes a year ago, they have since stabilized and have even partially recovered in recent months,” said Doug Porter, chief economist for BMO Capital Markets.

BMO’s survey found the average amount first-time Canada homebuyers plan to spend is approximately $300,000, with an average down payment amount of $48,000 or 16 per cent.

In Vancouver, the real estate board reported the number of houses sold rose 12 per cent in the past year, though sales were still down 22 per cent from the 10-year sales average.

In Toronto, sales in June were down by less than one per cent from a year earlier, while the average selling price rose 4.7 per cent to $531,374.

Dianne Usher, Toronto Real Estate Board president, predicted renewed growth for the second half of the year, saying homebuyers who had put their purchase on hold due to stricter lending guidelines were now actively looking for homes.

Robert Kavcic, senior economist with BMO Capital Markets, said he believed the impact of the rule changes has finished working its way through the market.

“In terms of affordability, it’s the same as an increase in mortgage rates,” he said. “People who were just scraping by with a 30-year amortization will not be entering the market.”

Statistics Canada also reported today that building permits increased in value by 4.5 per cent in May, compared to April 2013, continuing a rising trend begun in January.

A TD research report in June said home sales and the pace of construction are now more in line with historical performances. Flaherty’s tightening of mortgage rules was expected to have impact for only six to nine months, as the markets adjust to the new standards, TD said.

New Listings Tue Jul 9

NB: Many with price slashed ?

Open Map

C2637826 – M4V – 18 WOODLAWN AVE W Toronto, Ontario – $ 1,675,000

Price Change. Jul 9: $ 1,675,000 Jun 4: $ 1,750,000 May 16: $ 1,850,000
An Opportunity To Acquire A Detached House On Woodlawn Avenue With All Major Renovation Work Complete: Just Put Your Finishing Touches And Move In. The …

C2637826 GoogleMap

C2646520 – M4N – 227 ST LEONARDS AVE E Toronto, Ontario – $ 3,930,000

Price Change. Jul 9: $ 3,930,000 May 25: $ 3,960,000
Tarion Warranty Fab.Lawrence Park Elegance 5000+ Sqft,Very Fine Detailed In And Out Nested In Amazing Landscaped Lot.Full Of Upgrades With Heated Floor …

C2646520 GoogleMap

C2648666 – M4S – 100 REDPATH AVE Toronto, Ontario – $ 394,900

Price Change. Jul 9: $ 394,900 May 28: $ 399,000
Beautiful, Trendy Townhome: 2 Bedrooms, 2 Wshrms On 2 Levels. 800Sf.+200Sf.Patio. Engineered Hardwood Frs, Gorgeous Renovated Kitchen With New Cabinets, …

C2648666 GoogleMap

C2657359 – M3B – 15 LONGWOOD DR Toronto, Ontario – $ 2,595,000

Price Change. Jul 9: $ 2,595,000 Jun 6: $ 2,688,800
Stunning Elegance Best Describes This 1.5 Yr Old Custom Home With 10Ft Ceilings On Main Flr And 9Ft Ceilings On 2nd Flr And Lower Level. Exceptional …

C2657359 GoogleMap

C2671828 – M3B – 94 ABBEYWOOD TR Toronto, Ontario – $ 1,449,000

Price Change. Jul 9: $ 1,449,000 Jun 21: $ 1,469,000
Denlow Estates! Great Family Home Offers Formal Living Rm And Dining Room, Modern Kitchen And Baths, Updated Windows, Main Floor Office W/Custom Built …

C2671828 GoogleMap

C2673865 – M4S – 100 REDPATH AVE Toronto, Ontario – $ 429,000

Price Change. Jul 9: $ 429,000 Jun 22: $ 439,000
Gorgeous Midtown Townhome. Bright Corner Unit With Large Rooftop Terrace. Preferred Interior Location Within Complex (Less Street Noise). Absolute Move-In …

C2673865 GoogleMap

C2685786 – M3H – 88 REINER RD Toronto, Ontario – $ 679,000

Location! Location! Fabulous House In High Demand Area, Live Or Build Your Dream Home! Beautiful Open Concept Kitchen, Upgrated Kitchen With Granite …

C2685786 GoogleMap

C2685806 – M6J – 95 PALMERSTON AVE Toronto, Ontario – $ 675,000

Prime Downtown Location! Steps To Vibrant Queen West! Spacious Semi-Detached W/Garage! Great Bone! Just Need Your Imagination To Turn Into Beautiful …

C2685806 GoogleMap

C2685812 – M2N – 12A HYCREST AVE Toronto, Ontario – $ 1,188,000

Executive Detached House Located In Prestigious Heart Of North York. 9 Ft Floor On All Levels.Gleaming Hardwood Floor On Main Level.New Cabinets In …

C2685812 GoogleMap

C2685817 – M3A – 7 TEAL CRT Toronto, Ontario – $ 888,800

Enjoy The Gorgeous 4 Seasons View In Your Own Tranquil & Therapeutic Backyd. Humongous 190 Ft Deep Pie-Shaped Treed Park-Like Lot! Like Being In The …

C2685817 GoogleMap

C2685818 – M2J – 21 GROVE PARK CRES Toronto, Ontario – $ 749,000

Rare Find! Perfect And Meticulously Well Kept Family Home W/ Walk-Out Bsmt In Quiet Cres. And Convenient Neighbor d. Tastefully Landscaped With A …

C2685818 GoogleMap

C2685825 – M2J – 74 KINGSLAKE RD Toronto, Ontario – $ 769,800

Completely Renovated With New High Roof Trouses And Additional 750 Sqft Living Spaces, New …

C2685825 GoogleMap

C2685827 – M2N – 28 LYNDALE DR Toronto, Ontario – $ 1,480,000

Custom Built Home On Premium Lot*South Facing W Lots Of Natural Lights*Hardwood Flr Thruout*High Ceiling W Flr 2 Ceiling Baywindow*A Gourmet Kitchen W …

C2685827 GoogleMap

C2685845 – M5N – 232 COLDSTREAM AVE Toronto, Ontario – $ 2,295,000

Outstanding 5 Bdrm, 6 Bath Home. Magnificent Layout W/ Huge Principle Rms + Abundance Of Natural Light.Perfect For Entertaining + Family Living.4000 Sf …

C2685845 GoogleMap

C2685895 – M6G – 56 ALCINA AVE Toronto, Ontario – $ 1,199,000

2001 3rd Floor Addition,1982 3 Level Rear Addition Includes Lowered Bsmt.With Sep.Entrance To Perfect Home Office,Double Skylight In Family Size …

C2685895 GoogleMap

C2685928 – M5M – 466 MELROSE AVE Toronto, Ontario – $ 1,798,000

Timeless Elegance In A Gorgeous Lorne Rose Custom Designed Hm On One Of Ave/Lawrence Best Blocks! Backyard Oasis W/Cust. 2-Tiered Deck, Screened In …

C2685928 GoogleMap

C2685940 – M5P – 289 CHAPLIN CRES Toronto, Ontario – $ 3,699,000

The Courtyard House, Rare Modern Classic, A Designer/Builder s Own. App 4000 Sqft & 2800 Of Floor On Lower Level, Back Onto The Belt Line Trail W/Fab …

C2685940 GoogleMap

C2685949 – M9L – 5 EVERSON DR Toronto, Ontario – $ 380,000

Highly Desirable Avondale Community In The Heart Of North York. Roof Top Terrace Approx 250 Sq Ft Great For Bbq And Entertaining. Freshly Painted And …

C2685949 GoogleMap

C2686026 – M2J – 145 VILLAGE GREEN WAY Toronto, Ontario – $ 356,000

Rarely Seen 5 Bdrm Th In This Reasonable Price And Sought After Area. Spacious & Bright. Lots Upgrades/Renovations: Hdwd 2nd Fl, Hdwd Staircase, Ceramic …

C2686026 GoogleMap

C2686030 – M2H – 14 APACHE TR Toronto, Ontario – $ 510,000

Rare Large Corner Treed 46Ft Lot W/2 Car Garage. Excellent Demand Location Steps To Ttc, Close To Schools, Shopping, Parks & Seneca College, Dvp, 404 & …

C2686030 GoogleMap

C2686057 – M4X – 22 SACKVILLE PL Toronto, Ontario – $ 850,000

Historic Cabbagetown Stunning Complete Reno With Two Storey Rear Addition.Dream Kitchen With Granite Counters, Marble Backsplash, Large Island And Walk …

C2686057 GoogleMap

C2686125 – M4N – 30 LAWRENCE CRES Toronto, Ontario – $ 3,350,000

A Truly Exceptional Property In Lawrence Park. This Home Has Been Superbly Designed With An Excellent Layout & High End Finishes Throughout. Some Of …

C2686125 GoogleMap

C2686141 – M2L – 28 HEDGEWOOD RD Toronto, Ontario – $ 2,400,000

Attention All Builders1! Prime Lot On One Of The Most Prestigious Streets South Of Yorkmills. This Charming Cape Cod …

C2686141 GoogleMap

C2686164 – M5R – 15 AUSTIN TERR Toronto, Ontario – $ 2,399,000

Recently Renovated Casa Loma. Executive Residence Approx. 3,880 Sq.Ft. Total Living Space. Immaculate Land, Well Maintained Traditional Home Within The …

C2686164 GoogleMap

C2686198 – M2H – 25 PEBBLE BYWY Toronto, Ontario – $ 299,000

* Location! Location! Location! * Top School: Cliffwood Highland & A.Y. Jackson * Surrounding Ravine, Park, Tree, Trail, Playground * Seneca College, …

C2686198 GoogleMap

C2686204 – M5P – 767 SPADINA RD E Toronto, Ontario – $ 1,450,000

Forest Hill! Charming Tudor Home In Same Family For Over 60 Years! Features Spacious Living Room W/Leaded Glass Windows, Separate Formal Dining Room, …

C2686204 GoogleMap

E2685290 – M1T – 6 HIGHHILL DR Toronto, Ontario – $ 649,000

Price Change. Jul 8: $ 599,000 Jul 9: $ 649,000
Well-Kept 4-Level Sidesplit Detach, Back On Park, 4-Car Driveway, No Sidewalk, 1-Car Garage, 1-Yr New Shingle, 2-Yr Central Air, Ceramic Foyer, …

E2685290 GoogleMap

E2685841 – M4L – 147 GREENWOOD AVE Toronto, Ontario – $ 589,900

Reno d Main 09 / Bsmt 11 / Upper 12 & Lovingly Maintained. Compete Electrical 06. Peaked Roof 08. Flat Roof 10. Weeping Tiles, Drains, Waterproofed …

E2685841 GoogleMap

E2685863 – M4E – 42 HAMMERSMITH AVE Toronto, Ontario – $ 1,498,800

Absolutely Stunning Elegant And Tastefully Decorated.Completely Renovated & Upgraded From Top To Bottom. Two Years New! Upper Level 2 …

E2685863 GoogleMap

E2685885 – M4L – 277 HIGHFIELD RD Toronto, Ontario – $ 509,900

Gorgeous Home In A Fantastic Leslieville Neighbourhood. Quiet Tree Lined Street. Extensive Reno s Done From Top To Bottom Incl Newly Finished Bsmt …

E2685885 GoogleMap

E2685908 – M1B – 58 TRUMPETER ST Toronto, Ontario – $ 609,900

Beautiful Mattamy Built Detached Home In Desirable Rough Neighbourhood. This Rarely Offered 4-Bedroom, 2-Garage Corner Lot Has Great Curb Appeal And Shows …

E2685908 GoogleMap

E2685994 – M4L – 1 ASHLAND AVE Toronto, Ontario – $ 599,900

Large Detached Home Steps From Ashbridges Bay Park! Spacious Open Concept Living And Dining Rooms With Hardwood Floors Throughout. Main Floor …

E2685994 GoogleMap

E2686009 – M4J – 327 LINSMORE CRES Toronto, Ontario – $ 599,000

Fab Bungalow W/Inground Pool In Sought-After Neighbourhd! This Home Has Excellent Bones,Ideal To Live-In,Add-On,2Storey.Kit Already Relocated @ Back Of …

E2686009 GoogleMap

E2686107 – M4J – 241 MILVERTON BLVD Toronto, Ontario – $ 385,900

Attention All Renovators/Builders. Excellent Value With Huge Potential. 3 Bedroom Semi In Desirable Danforth …

E2686107 GoogleMap

E2686110 – M1L – 51 ROBINSON AVE Toronto, Ontario – $ 888,000

Rare Opportunity To Own A Brand New 4Br Home Under 3,200 Sqft Of Living Space. This Great Home Or Investment Features A Great Layout W/Stunning, Open …

E2686110 GoogleMap

E2686138 – M1E – 14 SANDRIFT SQ Toronto, Ontario – $ 479,888

Very Clean Bungalow In Excellent Location! This Is A Large Family Home With Combined Living Room And Dining Room And Berber Carpeting Throughout Most …

E2686138 GoogleMap

E2686142 – M1H – 14 FARADAY DR Toronto, Ontario – $ 449,000

Spacious Bungalow With Large Carport,Sep. Side Entrance And Rear Walkout Entrance,This Home Has Had Many Updates Over The Years, Including Updated …

E2686142 GoogleMap

E2686167 – M1M – 43 OAKRIDGE DR Toronto, Ontario – $ 449,900

Solid 3+1 Bedroom Bungalow Backing Onto A Park Located In The Upper Bluffs Area Of Cliffcrest. This Well Maintained Home Has An Updated Kitchen, Is …

E2686167 GoogleMap

E2686169 – M1W – 125 SANDYHOOK SQ Toronto, Ontario – $ 679,000

*””Aaa””-Well Maintained All Brick Hse*, Professional Renoveted Within A Year! Clean! Spacious! Bright! W/O To Deck From Kitchen! Skylight In Kitchen! …

E2686169 GoogleMap

E2686217 – M1T – 17 FARMCREST DR Toronto, Ontario – $ 699,000

High Demand Towne & Country Bungalow, All Brick Family Room Addition, A Total Of 1600 Sq Ft Plus Bsmt, Features Large Lot 75 & 120 Feet Deep, Two …

E2686217 GoogleMap

E2686224 – M1W – 68 ORANGEWOOD CRES Toronto, Ontario – $ 649,900

This Absolutely Stunning Builder?s Home Located In A Highly Demanded Area On Quiet Crescent. Recently Renovated With Modern Kitchen By Olympic …

E2686224 GoogleMap

W2628620 – M9R – 12 DELBASSO CRT Toronto, Ontario – $ 654,900

Price Change. Jul 9: $ 654,900 Jun 21: $ 659,900 Jun 9: $ 699,990 May 7: $ 725,000
Location!Location!Location!Fabulous 5 Lever Back Split On Quiet Cul-De-Sac!Completely Updated With Exceptional Finishes.Many Built-Ins,Speakers,Niches …

W2628620 GoogleMap

W2650157 – M9W – 37 BARRHEAD CRES Toronto, Ontario – $ 409,900

Price Change. Jul 9: $ 409,900 Jun 26: $ 429,900 May 29: $ 449,900
Comfortable Home In Great Location. Close To Schools, Transit And Shopping. 3 Bedrooms With A …

W2650157 GoogleMap

W2650829 – M9W – 38 ESMOND CRES Toronto, Ontario – $ 398,000

Price Change. Jul 9: $ 398,000 Jun 26: $ 418,000 May 30: $ 424,000
Well Built, Solid Family Home In Quiet, Peaceful, Treed Neighbourhood Of Wonderfully Kept Homes And Lawns! Private Fenced Yard, Double Drive, Attached …

W2650829 GoogleMap

W2657378 – M9B – 86 BEAVER BEND CRES Toronto, Ontario – $ 609,000

Price Change. Jul 9: $ 609,000 Jun 6: $ 629,000
Welcome To Desirable West Deane Park. Rare 4 Bedroom, 3 Bath W/ Double Garage On Sun Filled Corner Lot. Centre Hall Home Offers Newly Renovated Eat-In …

W2657378 GoogleMap

W2665616 – M9W – 52 RIVERHEAD DR Toronto, Ontario – $ 469,900

Price Change. Jul 9: $ 469,900 Jun 28: $ 479,900 Jun 15: $ 494,000
Three Level Split On Beautiful Riverhead Drive. Spacious Principal Rooms Featuring Crown Molding In Lr & Dr, Brick W/B Fireplace, Large Eat In Kitchen. …

W2665616 GoogleMap

W2676918 – M9W – 8 SNARESBROOK DR Toronto, Ontario – $ 384,900

Price Change. Jul 9: $ 384,900 Jun 27: $ 389,000
Cute And Cozy 1 1/2 Story On A Treed Line Street*Well Maintained Home* Modern Kitchen, Bright L-Shaped Living And Dining Room And A …

W2676918 GoogleMap

W2684928 – M6P – 259 KEELE ST Toronto, Ontario – $ 974,900

Absolutely Spectacular Legal Triplex Investment Property Completely Renovated To Perfection In 2013 From Top To Bottom With No Expense Spared Or Detail …

W2684928 GoogleMap

W2685792 – M8Y – 75 MANITOBA ST Toronto, Ontario – $ 499,000

2 Bedroom Brick Bungalow Within Walking Distance Of Go Train. Separate Side Entrance To Potential In Law …

W2685792 GoogleMap

W2685858 – M3J – 425 MURRAY ROSS PKWY Toronto, Ontario – $ 689,900

Location! Location! Location! Immaculate Detached Home …

W2685858 GoogleMap

W2685887 – M8Z – 123 LOTHIAN AVE Toronto, Ontario – $ 798,000

Incredible Opportunity To Own Beautifully Renovated Home In High Demand Norseman Heights.Property Features;Attractive Foyer W/ New Granite Tile,Charming …

W2685887 GoogleMap

W2685889 – M9C – 256 MARKLAND DR Toronto, Ontario – $ 669,900

Opportunity Calling You To One Of The Most Appealing Locations In The Gta, Markland Wood. This Clean & Freshly Painted Home Sits On A Large & Private Lot …

W2685889 GoogleMap

W2685896 – M3M – 10 DANA AVE Toronto, Ontario – $ 499,000

Detached Renovated Bungalow, 60 Frontage, Fin. Bsmt With Sep. Entrance. Very Quiet Street, Near Park. Large Eat-In Open Concept Kit. Stainless Steel …

W2685896 GoogleMap

W2685920 – M8W – 133 LAKE PROMENADE Toronto, Ontario – $ 2,139,000

Designers Own Home. A Sense Of Mediterranean Feel Greets You On Entering This Magnificent Waterfront Property. Relax In Casual Elegance; Enjoy The …

W2685920 GoogleMap

W2685929 – M6S – 60 RAYMOND AVE Toronto, Ontario – $ 639,900

Rarely Offered ! Baby Point Area Bungalow ! Features Include: Spacious Living Rm,Separate Formal Dining Rm, 2 Bdrms, 2 Full Bathrooms,Finished Bsmt,Tons …

W2685929 GoogleMap

W2685934 – M9B – 49 POPLAR AVE Toronto, Ontario – $ 785,000

Brand New 2nd Storey, Totally Renovated Throughout, Bright And Spacious Home Filled With Lots Of Natural Sunlight! Detached Home In A Much Desired …

W2685934 GoogleMap

W2685954 – M9B – 364 THE EAST MALL Toronto, Ontario – $ 258,000

Gorgeous Sun Filled & Spacious 1305 Sqft 3 Bdrm 2-Storey Townhouse In Central Etobicoke. Newly Renovated Kitchen W/ Stainless Steel Appliances And Ss …

W2685954 GoogleMap

W2685959 – M9M – 3043 WESTON RD Toronto, Ontario – $ 1,069,000

Stunning New Custom Built Luxury Home With High End Finishing Touches*1000 Sft, 2 Bed Bsmt Apartment, Separate Entrance*Designed And Built By French …

W2685959 GoogleMap

W2686004 – M6E – 22 PRESTON RD Toronto, Ontario – $ 398,800

Attention Builders, Renovators And Handymen, Great Lot 25 X 168.42 Ft With Endless Possibilities To Re-Build, Renovate Or Add Built-Up. Located In A Very …

W2686004 GoogleMap

W2686033 – M9V – 33 TAMARISK DR Toronto, Ontario – $ 469,900

Upgraded Detached Bungalow In Wonderful Neighborhood. Newly Painted, New Windows, New Ac And 4 Bedrooms In Basement With …

W2686033 GoogleMap

W2686034 – – $ 419,000

Great Location With Ttc At Door Step, Renovated Home, Front Stone, Brick & Aluminum On The Side, New Windows 2010, New Eaves, Facia & Sofits, New Furnace …

W2686034

W2686078 – M6E – 84 LIVINGSTONE AVE Toronto, Ontario – $ 499,000

Excellent Detached Home In Desirable Neighbourhood. Short Walk To Subway, Bus And The Shops Of Eglinton. Large Addition At Back Of Home Features Eat-In …

W2686078 GoogleMap

W2686082 – M9W – 83 REDWATER DR Toronto, Ontario – $ 489,000

Welcome To This Beautifully Renovated 3 Bedroom + 1 Bungalow. Brand New Kitchen Cabinets With Granite Counter Top. Professionally Painted Thruout. …

W2686082 GoogleMap

W2686100 – M9N – 247 ROSEMOUNT AVE Toronto, Ontario – $ 399,900

Spacious 3 Bedroom Home In Sought After Weston. Steps To All Amenities Go Station, Ttc, Schools, Parks, Hospital & Shops. This Lovely Well Kept Home …

W2686100 GoogleMap

W2686145 – – $ 899,000

High Park Ravine Retreat – Walk Out To Garden And Large Deck Overlooking Grenadier Pond. 3 Bedrooms, 2 Renoed Baths, 2 …

W2686145

W2686186 – M8Y – 38 MILTON ST Toronto, Ontario – $ 329,000

Don t Miss Out On This Fabulous Opportunity To Either Renovate Or Build Your Dream Home In A Sought After Mimico Neighbourhood. Home Is Conveniently …

W2686186 GoogleMap

W2686194 – M8Y – 175 GRAND AVE Toronto, Ontario – $ 619,900

Spacious Executive Townhome In Highly Sought-After Community On Quiet Cul-De-Sac * 16 Ft Wide * 3 Bdrm Town With Hardwood Throughout * 9 Ft Ceilings * …

W2686194 GoogleMap

W2686199 – M6P – 64 VERNON ST Toronto, Ontario – $ 624,000

Charming Updated Upper Bloor West Village 3+1 Bdrm Det W/Finished Bsmt, Sep Entrance & 4Pce Bath. Large Eat In Kit & Main Flr Fam Rm. 2 New …

W2686199 GoogleMap

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This

Share this with your friends